Chinese rail giant inks $5.5bn in Africa deals – state media

One of China’s largest railway companies Construction Corp Ltd (CRCC) has signed two construction deals in Africa worth a combined $5.5 billion, demonstrating its ability to compete on the international stage.

China has recently increased its efforts to win more
international contracts. The two largest Chinese state-owned
train makers CSR Corp and China CNR Corp are in the middle of a
merger to create a $26 billion new mega-company to compete in
overseas markets. They received approval from the government in
early April.

At home, China is planning a major expansion of domestic rail
routes and plans to add another 14,545 kilometers of high speed
track by 2020 in addition to the current 16,000, Bloomberg
reported, citing Daiwa Capital Markets analysts Brian Lam and
Kelvin Lau.

China is working to revive the Silk Road, an ancient trading
route that connected Asia to Europe. Recently it has been
considering major deals with Pakistan and Russia Both are part of the so-called ‘One
Belt, One Road’ initiative to boost trade and communication with
Russia and Europe.